There are multiple benefits to your generosity.  This includes integrating charitable giving as an important strategic component of your overall financial plan. A carefully constructed giving plan can benefit both you and the causes you care about.

As more clients and their families become involved in supporting charities, they look increasingly to us for guidance. Charitable giving is an important part of your comprehensive Private Wealth Management strategy as a shared gift planning process can strengthen relationships within families through the next generation. We can help you create your charitable giving plan to share your wealth most effectively.

Our team can help you choose specific giving options, such as a donor-advised fund. This can provide many of the benefits of a private foundation without the upfront costs and administrative responsibilities. Or, if you hold publicly traded securities, such as stocks, bonds, or mutual funds, and choose to gift these investments, you may enjoy additional tax savings.

Our team can help you develop a long-term strategic approach to charitable giving to build your legacy and encourage philanthropy across future generations.

Learn more about IG Wealth Management Charitable Giving Program here. 
 

Commonly Asked Questions

  • Making a charitable donation

    To maximize the impact of your charitable donations and minimize taxes, it pays to have a charitable giving plan. This will involve deciding on the charities you want to donate to and ongoing donation targets. Our team can help you to set up a tax-efficient charitable giving plan and give you more information about the IG Wealth Management Charitable Giving Program. (Source How much do charitable donations reduce taxes in Canada | IG Wealth Management)

  • What are the tax deductions for a charitable donation?

    The amount of your tax credit will depend on how much you donate and which province you live in. While federal tax credits are uniform across the country, provincial and territorial tax credits can vary considerably. In general, the first $200 of charitable donations reported on your tax return will bring about a 15% federal tax credit, and donations above that amount will normally bring 29% in federal tax credit. If you have income subject to the highest federal marginal tax bracket, the federal tax credit can be increased to 33% for donations claimed (up to the amount of your income that is subject to the highest tax bracket).

    Provincially, up to $200 of donations can bring tax credits between 4% (Nunavut) and 20% (Quebec). Most provinces provide tax credits at this amount of donations at under 10%. Charitable donations over $200 will typically bring provincial tax credits between 11.16% (Ontario) and 24% (Quebec). Be aware that in Quebec the federal tax savings are generally reduced by the federal tax abatement. In certain provinces, the donation tax credit savings may be increased if you have higher income levels or are subject to a provincial income surtax.

    There is a maximum charitable donation limit of 75% of your net income. The limit is increased to 100% of your net income for gifts of ecologically sensitive land and certified cultural property. To claim charitable tax donation tax credits, you would need to report the donation when you file your taxes – be sure to include all tax receipts for donations.

    Donnelly Group Private Wealth Management will help you develop your charitable giving plan. (Source How much do charitable donations reduce taxes in Canada | IG Wealth Management)

  • How to maximize charitable donations?

    There are two ways to reduce your taxes even more with charitable donations that include:

    • Accumulate your donations: given the tax credit is significantly higher for donations above $200, it can be worthwhile accumulating your donations in order to increase their overall value. One way to do this is to claim several years’ worth of donations in just one year (you can carry charitable donations forward for up to five years). Another way is to combine them with your spouse’s or common law partner’s donations in a single tax return.

    • Donate investments: you can donate publicly traded securities, such as shares, mutual funds and exchange-traded funds to qualified charities. If your investments have risen in value, you would normally be subject to capital gains tax on them when you sell them. However, if you donate the assets to a charity, neither you nor the charity pay capital gains tax. Furthermore, your tax receipt for donations is at the full market value of the assets at the time you donate them.

    Intergenerational Wealth Transfer Intergenerational Wealth Transfer | Donnelly Group Private Wealth Management (donnellygrouppwm.com)

  • How to transfer wealth to the next generation?

    Did you know that many Canadians are not adequately prepared to pass on or inherit family wealth? This is often due to a lack of communication and planning. The good news is that it’s never too early or too late to start. Planning helps you identify tax saving opportunities, mitigate potential financial gaps and maximize your current lifestyle. Here are 10 actions you can begin to take today.

    1. Clearly define what legacy planning means to you

    2. Prepare now for the unexpected

    3. Think about your family structure

    4. Ensure you estate is passed on in the most tax efficient manner

    5. Take care of special assets like family businesses and vacation properties

    6. Address personal items with sentimental value

    7. Consider a trust

    8. Plan charitable giving carefully to maximize the tax benefits

    9. Identify important roles

    10. Address financial literacy early

    Ask our team for resources to use on your own or with loved ones to start mapping out goals, identify unique family considerations, and explore shared values.